Applecross Dental Services is investigating expanding its operations by acquiring additional teeth cleaning equipment. The equipment would cost $$135,000$ and management has estimated that it would result in net cash inflows of $$14,300$ per year. The equipment would have a $15-$year useful life with an expected salvage value of $$13,700.($Ignore income taxes.$)$

Required:

$1.$ Compute the equipment$$s IRR. $($Hint: Use Microsoft Excel to calculate the discount factor$($s$).)($Do not round intermediate calculations and round your final answer to $1$ decimal place.$)$

$2-$a$.$ Assume that instead of $$14,300,$ the salvage value in $15$ years for the new equipment will be $$0.$ Compute the IRR under this new assumption. $($Do not round intermediate calculations and round your final answer to $1$ decimal place.$)$

$2-$b$.$ This part of the question is not part of your Connect assignment.